Crude Prices Supported by Geopolitical Risks and Possible Fed Rate Cut

The October (October) Oil (CLV25) rises today +0.98 (+1.54 %), and RBOB Gasoline (RBV25) rises +0.0083 (+0.42 %).

Oil and raw gasoline prices rise to the top of the day, as they spread 2.5 weeks high raw at the highest height for 3 weeks. Crude oil prices have doubts about negotiations to end the Russian -Ukrainian war. The crude is also climbing to the FBI’s expectations to reduce interest rates at the FOMC meeting next month, which may enhance economic growth and energy demand. The gains in the crude accelerated today after the prices of the moving average for 100 days, which led to some purchase from the algorithm -based merchants. The strongest dollar today limits the gains in raw.

The crude prices also have support for the concern that the Russian -Ukrainian war will continue, which can keep restrictions on Russian crude exports in place, and even secondary restrictions can add Russian Foreign Minister Lavrov that there is no planned meeting between Russia and Ukraine leaders and that there must be “a agenda” to meet to attend. “This agenda is not ready at all.”

Fears related to OPEC production are negative for crude prices after OPEC+ on August 2 supported an increase of 547,000 barrels per hour in its raw production on September 1. OPEC+ production is enhanced to reflect a two -year production reduction, as production that has a total production was deported late in production. -20,000 BPD to 28.31 million barrels per day.

The increase in crude oil that has been held all over the world on downtles of oil prices. Vortexa reported today that crude oil stored on tankers that were fixed for at least seven days increased by +11 % w/s to 96.77 million barrels in the week ending on August 22.

The weekly EIA report showed last Wednesday that (1) American crude oil lists as of August 15 were less than 5.6 % of the seasonal average for a period of 5 years, (2) gasoline stocks were less than -0.7 % than the seasonal average for 5 years, and (3) distillation stocks by -13.0 % of the seasonal average for 5 years. US crude oil production increased in the week ending August 15 by +0.4 % w/s to 13.382 million barrels, less than the record number of 13.631 million barrels per day published in the week 12/6/2024.